Hendy Automotive is ready to show in a loss in 2024 on account of poor new and used car profitability. The loss was introduced in monetary outcomes filed at Corporations Home for the earlier yr.
Hendy described 2024 as difficult and mentioned the unaudited administration accounts for the yr to 31 December 2024 present a loss.
“Management have undertaken a complete review of the business and have implemented a number of trading improvement initiatives and cost reductions and are forecasting a return to profitability for the year to 2025,” it mentioned.
“As a result of this loss, covenants for the year have been breached and waived and this has led to a covenants reset and results in new investment totaling £11.5m in the form of debt and equity by the shareholders, together with a sale of two properties and a significant reduction in the contributions made to the defined benefit pension scheme, which has been approved by the pension trustees.”
As beforehand reported in Motor Dealer, Hendy Automotive has seen the group recruit new administrators because it moved to a brand new regional mannequin, introduced in December 2024.
In February it introduced the appointment of two new members to its operational board, in addition to position adjustments for different members, all reporting to Duncan McPhee who turned Chief Working Officer final October.
And in March it bolstered its board with the appointment of Daksh Gupta as a non-executive chairman, changing Simon Gulliford. He’s joined by new non-executive administrators Michael Buxton, the ex-president of Cox Automotive and Nigel Farrell, associate in regulation Agency Farrells Authorized Providers.
Within the outcomes filed at Corporations Home for 2023, earnings fell 50.4% to £7.2m on turnover up 15.9% to £1.163bn.
Hendy mentioned the revenue fall was “acceptable” given the market turbulence within the second half of 2023 yr with falling used automobile costs within the remaining quarter. It mentioned the autumn was significantly arduous on premium automobiles and EVs. Practically all sellers had been hit arduous within the second half by the autumn in used automobile values.
The group mentioned it continues to reshape the enterprise with the acquisition of Poole Vauxhall in late 2023. Throughout 2024 it added the Peugeot, Fiat and Citroen franchise to the positioning.
It accomplished the constructing of a brand new dealership in Eastleigh to accommodate Nissan, Renault, and Dacia and Alpine.
And it dedicated to new properties to improve illustration for Ford, Kia and Mazda in Tunbridge Wells and to symbolize Vauxhall and Peugeot in Tonbridge.
